Western Australia's Keysbrook Mineral Sands Project Secures Funding

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Researched by Industrial Info Resources Australia (Perth, Australia)--The outlook for the Keysbrook Mineral Sands project in Western Australia is more optimistic after MZI Resources Limited (ASX:MZI) (Perth, Western Australia) secured more than AU$69 million (US$63.89 million) in project debt funding.

The Keysbrook Project, which is about 70 kilometres south of Perth, is characterized by its high leucoxene content. When operational, it will be one of the world's largest producers of premium leucoxene. It will produce 92,000 metric tonnes per year of leucoxene and zircon from 110,000 metric tonnes of dry heavy mineral concentrate.

The company is now fully funded for the project's development and construction, with sources confirming that first production can be expected 52 weeks from kick off. The project involves constructing a single open pit mine, combined with the construction of a 600-metric-ton-per-hour wet-processing plant, to produce more than 110,000 tons per year of heavy mineral concentrate.

When processed, minerals will be transported 120 kilometers by truck through road-access points, to be re-processed at an already-existing dry mineral separation plant in Picton, which is operated by privately owned Doral Mineral Sands (Perth).

In 2013, MZI Resources Limited and Doral Mineral Sands signed a toll-processing agreement, under which heavy mineral concentrate from the Keysbrook Mineral Sands project will be treated at Doral's mineral separation plant.

The Doral plant is located 10 kilometres from the Bunbury Port, from which MZI Resources Limited plans to export its final product. The current processing plant, owned by Doral Mineral Sands, is expected to be upgraded and expanded in preparation for the Keysbrook development.

Sources working on the project have confirmed the selection of GRI Engineering (ASX:GNG) (Perth) as the preferred contractor, making it the central player in the project's engineering, procurement and construction services. Total project capital costs are estimated at AU$68 million (US$62.96 million), most of which is already secured under the contract with GR Engineering.

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